In a prior post we reported that in June the U.S. Supreme Court ruled that streaming television service, Aereo, violated U.S. copyright law in connection with its business and legal battle with the major broadcast networks. At the time, we posed the question of whether, despite losing the lawsuit, Aereo had a future as a cable company?

The answer, it seems, is no. On November 20, Aereo filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for for the Southern District of New York, listing assets of $20.5 million and debt of $4.2 million. Read More ›

The term “offer” is broadly defined under the securities laws as "every attempt or offer to dispose of, or solicitation of an offer to buy . . . for value." An offer, even without completion of the sale of securities, can run afoul of the securities laws.

An interesting case from 2011 punctuates this point and demonstrates the risks of unknowingly violating securities laws. Two advertising executives hatched an innovative, although imprudent, plan to purchase Pabst Brewing Company by offering to sell shares on Facebook and Twitter to cover the $300 million cost of the transaction. The campaign, which may have begun as simply a publicity stunt, was wildly successful, attracting five million pledging $200 million. A bit too successful, it turns out.

The SEC soon took notice and halted the campaign via a Cease and Desist Order due to a violation of securities laws by the ad men. They failed to register the public offering with the Securities and Exchange Commission (SEC) and could not meet an exemption. A settlement was reached and the men, who never actually collected any money, paid a fine and agreed to stop selling shares to the public.

The SEC, which has an entire enforcement unit devoted to Internet surveillance, is paying increasing attention to online activity. By law, public offerings - online or otherwise - must be registered with the SEC or meet an applicable exemption before promoters begin to offer or sell shares. Read More ›